The moribund Italian economy would spring to life if the euro fell by 30 , adjusted for inflation. In 1997, South Korea s economy took a nosedive, and 1998 was still difficult, but GDP soared by 11.1 in 1999.

Moreover, the new EU member states in Eastern Europe, which have neither the economic strength nor the political stability of long term members, are now beginning to take a nosedive. Given the exposure of some euro zone states such as Austria, this crisis will also affect the euro area directly.